KAPA GOLD Provides Further Details ON Option Agreement FOR BC Nickel Project
Kapa Gold Inc.
Suite 1400 – 1199 West Hastings Street
Vancouver, BC, V6E 3T5
Tel: 604-961-9442 | [email protected]
www.kapagold.com
KAPA GOLD PROVIDES FURTHER DETAILS ON OPTION AGREEMENT FOR BC NICKEL PROJECT
VANCOUVER, BC – March 6, 2023 – KAPA GOLD INC . ( TSXV:KAPA) (“Kapa” or the “ Company”) is
pleased to provide additional details on its recently signed option agreement (“Option Agreement”)
to acquire a 100% interest in the Mastodon Nickel Project (“Mastodon”) a large, historic nickel project
located in Southern BC.
As previously reported on February 21, 2023, Kapa recently entered into the Option Agreement with
Guy Delorme (“Delorme”) to earn a 100% interest in Mastodon . Terms of the Option Agreement
include the payment of an initial deposit of $25,000 due upon 30 days of signing , the issuance of
50,000 common shares and exploration expenditures of $150,000 in the first year. At the end of year
one, a further 150,000 common shares are due and as well as a payment equal to 10% of all incurred
exploration expenditures. In addition, the Company must make five further annual share issuances of
200,000 shares per year and cash payments equal to 10% of all exploration expenditures, capped at a
maximum of $1 million. Additional terms include that upon a positive feasibility report being prepared,
incorporating NI 43-101 and CIM standards, payment of either $1 million or 1 million shares is payable
upon the election of Kapa. The Option Agreement grants a 3% NSR, with 1.5% payable to Delorme and
1.5% payable to Carlium Developments Inc (“Carlium”) upon commencement of commercial
production. Kapa has the right to purchase 0.5% of the NSR from each of or either Delorme and
Carlium at any time upon an additional payment of $1 million. The Company has the further right to
acquire an additional 0.5% from each or either of Delorme and Carlium within 12 months of
commercial production with payment of an additional $1.5 million cash to each or either of Delorme
and Carlium. The Option Agreement is subject to TSXV Exchange approval.
Kapa has reviewed the historic documents and reports detailing exploration activities relating to the
Mastodon project going back to the early 1900’s.
The Mastodon project covers 2,118 hectares on Castle Mountain just southeast of Christina Lake in
Southern B.C., 18 kilometers from Grand Forks, and is easily accessible. Geologically the project covers
a large portion of the Castle Mountain “alpine type” ultramafic body, a serpentenized dunite -
peridotite-gabbro complex that has been tectonically emplaced against Rossland Group volcanic and
sedimentary rocks. The project lies in a well mineralized area midway between the historic Rossland
and Boundary Mining camps.
In 1918 the Ministry of Mines reported 800 tons of chromite ore grading 30 -40% was shipped from
the Mastodon crown grant. The Munitions Resources Commission reports assays of 0.68 g/t platinum
from rocks on the project area. The main exploration emphasis occurred between 1966 to 1977 when
Hunter Point Exploration followed by Chromex Nickel Mines outlin ed a large , low grade nickel
resource from trenching, geophysics and drilling. The geology was under the direction of R. Steiner,
PGeol. In his 1977 report Steiner defined 57 AQ drill holes totalling 19,908 feet and outlined a body
of 408,000,000 tons of nickeliferous ore grading between 0.22 to 0.32% nickel. In total since 1977,
exploration has been intermittent in the area with different early stage programs displaying potential
for nickel, chromium, gold and platinum group elements.
The host ultramafic body is described as largely serpentinite and is composed of variably oxidized
alternating layers of serpentinized dunite or gabbro or their equivalents. The host ultramafic body is
currently outlined as 2,440 meters in length, 1,220 meters wide , and dips 38 degrees to the east.
Nickeliferous magnetite and nickel sulphide minerals consisting of pentlandite, millerite and
heazlewoodite are more or less uniformly distributed and disseminated throughout the ultramafic
body. Some chalcopyrite and brucite have also been identified. Approximately 42% of the total nickel
content is held in solid solution with magnetite and sulphides hold the balance. Initial metallurgical
testwork in 1975 concluded more work and metallurgical testing will be required to establish the best
practice to recover nickel sulphides tied up with the serpentinized rock.
The Company acknowledges that the presented work is historic in nature and should not be relied
upon and current methodologies are required to bring the projec t to current standards. A Qualifed
Person has not done sufficient work to classify any of the historical etimates as current resources and
the Company is not treating any historical estimates as current mineral resources. Kapa has all the
historic records and will continue to review these prior to a site visit once snow has disappeared. At
that time it can properly assess the style and nature of required exploration.
Assuming the exercise of the Option, Kapa believes the Mastodon project will provide its shareholders
with exposure to a significant nickel development asset and additional exposure to strategic metals
while also providing project diversification.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and
approved by Dr. Allan Miller, PhD., P.Geo. , Consultant and Senior Geologist of Kapa Gold Inc, a
“Qualified Person ” as defined in National Instrument 43 -101 Standards of Disclosure for Mineral
Projects.
About Kapa
Kapa Gold, led by experienced capital markets and geologic team, is focused on exploring its 100%
owned historic Blackhawk Gold Mine and surrounding underexplored properties for economic
mineralization.
To learn more, visit www.kapagold.com
On behalf of the Board of Directors
KAPA GOLD INC.
“David K. Paxton”
CEO and Director
For More Information Contact:
Konstantine Tsakumis
604-961-9442
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Forward Looking Information
Certain statements made, and information contained herein may constitute "forward looking
information" and "forward looking statements" within the meaning of applicabl e Canadian
and United States securities legislation. These statements and information are based on facts
currently available to the Company and there is no assurance that actual results will meet
management's expectations. Forward-looking statements and information may be identified by such
terms as "anticipates", "believes", "targets", "estimates", "plans", "expects", "may", "will", "could" or
"would". Forward-looking statements and information contained herein are based on certain factors
and assumptions. While the Company considers its assumptions to be reasonable as of the date
hereof, forward-looking statements and information are not guaranteeing of future performance and
readers should not place undue importance on such statements as actual events and results may differ
materially from those described herein. The Company does not undertake to update any forward -
looking statements or information except as may be required by applicable securities laws.